October 23, 2008 CBP Bulletin Notice on Classification of a Motorcycle Lock Set

Proposed revocation of ruling; proposed revocation of treatment. CBP is proposing to revoke one ruling on the classification of a motorcycle lock set. Additionally, CBP proposes that this notice covers any rulings on this merchandise that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.

CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by November 22, 2008, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.

Motorcycle lock sets. The merchandise at issue is a lock set, identified as part number 35010- MBW-A10, for use with the Honda CBR 600F motorcycle. It consists of a switch assembly, an alloy steel fuel filler cap with integrated lock and a motorcycle seat lock. A pair of matched keys to operate the three parts is included in the Lock Set. The Lock Set is packaged together in a box inside an unsealed clear plastic bag.

CBP is proposing to issue HQ H009850 in order to revoke NY N007611 and reclassify the motorcycle lock set under 8714.19.0060 as "other parts and accessories of motorcycles" as a set rather than classifying each item separately with the ignition cylinder switch assembly under 8536.50.9065 as "other electrical switches," the seat lock under 8301.20.0060, as "key operated locks of a kind used on motor vehicles," and the steel fuel filler cap with integrated lock under 8714.19.0060, as "other parts and accessories of motorcycles."

CBP proposes this change as a correction based on the GRIs and the Explanatory Notes to the GRIs. The issue is whether the lock set is classifiable as a set. EN X to GRI 3(b) provides guidance as to what constitutes "goods put up in sets for retail sale":

For the purposes of this Rule, the term 'goods put up in sets for retail sale' shall be taken to mean goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings . . . ;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).

CBP states that the items comprising the Lock Set are prima facie classifiable under different headings of the HTS. The Lock Set is intended for installation on a single motorcycle to meet the need of an owner to carry a single key that will operate multiple functions of the motorcycle, all of which require the use of a key. Requiring the use of a key to access the ignition, gas tank, and storage compartment provides the owner with security for the motorcycle. The use of one key for accessing all three of these functions also fulfills the owner's need for convenience, as the owner is not obligated to carry multiple keys for each function. Accordingly, the Lock Set is put up together to meet an owner's needs for convenience and security, through the use of a single key. The goods are also imported in a manner suitable for sale to users without repacking. For these reasons, CBP proposes that the goods should be classified as a set.

GRI 3 (b) states that a set shall be classified based on its essential character. Explanatory Note VIII to GRI 3(b) explains "the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods." In this case, the principal reason for purchasing the Lock Set is to obtain three items that utilize the same key. CBP states that this functionality is also its essential character; however, no single item imparts this. Therefore, since the set is not classifiable by reference to GRI 3(b); classification must be determined in accordance with GRI 3(c), under the last tariff number in numerical order, heading 8714.

CBP proposes that by application of GRI 3(c), the Lock Set for the Honda CBR 600F motorcycle should be classified in subheading 8714.19.0060, as: "Parts and accessories of vehicles of headings 8711 to 8713: Of motorcycles (including mopeds): Other: Other."

Proposed: 8714.19.0060, duty-free; Current: ignition switch lock 8536.50.9065, 2.7%, seat lock 8301.20.0060, 5.7%, fuel cap lock 8714.19.0060, duty-free

October 23, 2008 CBP Bulletin (Vol. 42, No. 44) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2008/